Data Regulation: Who Should Control Our Data?

32 Pages Posted: 28 Mar 2021

See all articles by Sarit Markovich

Sarit Markovich

Kellogg School of Management

Yaron Yehezkel

Coller School of Management , Tel-Aviv University

Date Written: March 10, 2021

Abstract

We consider a platform that collects data from users. Data has commercial benefit to the platform, personal benefit to the user, and public benefit to other users. We ask whether the platform, or users, should have the right to decide which data the platform commercializes. We find that when users differ in their disutility from the commercialization of their data and the public benefit of data is high (low), it is welfare enhancing to let the platform (users) control the data. In contrast, when heterogeneity is in the disutility from the commercialization of different data items, it is welfare enhancing to let users (the platform) control the data when the public benefit of data is high (low).

Keywords: data regulation, network extremities, coordination

JEL Classification: L1

Suggested Citation

Markovich, Sarit and Yehezkel, Yaron, Data Regulation: Who Should Control Our Data? (March 10, 2021). Available at SSRN: https://ssrn.com/abstract=3801314 or http://dx.doi.org/10.2139/ssrn.3801314

Sarit Markovich (Contact Author)

Kellogg School of Management ( email )

2211 Campus Drive
Kellogg
Evanston, IL IL 60208
United States

Yaron Yehezkel

Coller School of Management , Tel-Aviv University ( email )

Ramat Aviv
Tel Aviv, 69978
Israel

HOME PAGE: http://www.tau.ac.il/~yehezkel/

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